Are European Service Organizations Along for the Revenue Ride?

In 2012, Aberdeen is taking steps to expand its research presence in Europe with more EU-specific, and eventually country-specific, content tied to all our research practices. In the Service Management group, we have a very active European survey respondent baseand have even developed a European Research Advisory Council (RAC). This Council, comprised of 20 service business leaders, convenes a on quarterly basis to discuss the key themes driving their service businesses. These leaders also help us shape our research agenda to make sure that we are providing commentary and insight on the major developments in the market. If you are interested in joining the RAC please contact Aly Pinder – aly.pinder@aberdeen.com.

Our 2011-2012 State of Service Management research survey yielded over 50 European respondents who shared their thoughts on their goals, strategies and challenges for 2012. Most findings were in alignment with the general population (n=215), but here are some of the highlights:

Service is a Profit Center. Unanimously, 76% of European respondents highlighted that they were managing their service organizations as profit centers with P&L objectives in place. More so, 68% indicated that they were generating a profit in service. Looking forward, 82% of respondents indicated that they would be managed as profit centers by the end of 2012.

The Search for Revenue is On. For 2012 goals, 27% of European respondents highlighted that revenue growth was their top goal, in comparison with 25% of all respondents (across all geographies). In the pursuit of profitability, revenue continues to be an emerging area of growth and innovation requiring a continued focus on contract management and the development of new services. (Note: we are currently conducting a separate survey on service revenue and the development of new services – so please participate)

New Service/Services Development is Key. Sixty-two percent (62%) of European respondents indicate that new service development is the top area of investment in 2012 to attain service business goals. The next closest investment area was leadership as responded to by 33% of survey takers. It is clear that service organizations in Europe are looking to transition from pure break/fix or preventative service providers to solution partners for their customers. These new services range from consulting, asset optimization and intelligence-based services.

In the coming weeks, the Service Management team will publish a European State of Service Management research document that highlights the key findings while also providing some insight into what top performing organizations in Europe are doing to improve their financial fortunes in 2012. Visit the Aberdeen Service Management research practice page for periodic updates on this and related topics.

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